7 Things That Could Affect Life Insurance

May 18, 2023

Life insurance is an essential investment for your family’s financial future. Consider the financial impact that your death could have on your family. Your life policy can offset that burden. When you are ready to invest in coverage to protect your family’s financial stability, you might wonder what contributes to the cost of your policy.

Personal Factors That Affect the Cost of Life Insurance

The most significant premium rate factors are personal ones. Understanding them can help you prepare as you shop for policy quotes.


Life policy premiums depend on how long you are expected to live. According to statistical analysis, women have longer average lifespans than men. As a result, women typically find that their life policy premiums are lower.


The earlier in life you invest in a policy, the lower the premiums will be. You are a lower-risk policyholder, which saves you in your premiums. That’s why shopping early is the best life insurance strategy.


You pose a greater risk to your insurance carrier as a smoker because of the adverse health effects and potentially shorter lifespan. Smokers can expect to pay significantly more in premiums than an equivalent policyholder who does not smoke.

Current Health

Depending on your age, health, the type of policy, and the amount you are applying for,  you may berequired to have a wellness physical. They assess blood pressure, cholesterol, height and weight, and any existing medical conditions. If you have a chronic condition you worry could disqualify you, look for a no-exam policy, though premiums are usually higher.

Hereditary Conditions

Most life insurance underwriting also includes questions about your family’s medical history, especially for immediate family members. A parent or grandparent with a hereditary condition could factor into your premiums.

Hobbies and Career

Your premiums may reflect increased risk if you participate in high-risk hobbies, such as rock climbing, skydiving, bungee jumping, or scuba diving. The same applies to those with high-risk jobs, such as police officers, first responders, and medical care professionals.

Driving Record

Many insurance carriers consider your motor vehicle record during life policy underwriting. Any reckless driving behaviors, DUIs, or traffic infractions in the last few years could indicate irresponsibility and higher risk factors. Those increased risks translate to higher premiums.

Some of these factors you can affect. Quit smoking, be proactive about your health, and be responsible behind the wheel to get a better price on your life policy.

Policy-Based Factors That Affect the Cost of Life Insurance

The premium structure is different for various life policies. A term life insurance policy is typically more affordable than whole life policies. Term life is the more affordable solution because it has a defined lifespan and builds no cash value. The cash value generation offsets the increased cost of whole-life coverage. Sometimes, that cash value can pay the annual premiums to keep the policy in force.

Now that you understand what can affect a life insurance policy, you can make the necessary choices to manage your premiums. Ask for life insurance quotes for various products to find the one that fits your budget and needs.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.